India is the US 9th largest trading partner with $24.2 billion trade deficit in 2018. The US has confirmed that GSP benefits to India have been terminated, is a top beneficiary of the GSP program.
The Generalized System of Preferences (GSP), as was being accorded by the US to imports from India since 1976. Trump’s move will add tariffs 7% on Indian exports of goods like chemicals, auto parts and tableware to the U.S. GSP is a voluntary exercise of preferential market access that developed countries have the discretion to provide. Mr. Trump on Friday said India would be removed from the U.S.’s privileged-trading program.
What is GSP ?
GSP provides US tariff reduction for least developed countries. Its ensure preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories . The GSP program was instituted on January 1, 1976.On October 30, 2018, President Trump issued Presidential Proclamation 9813. The proclamation will implement changes to the Generalized System of Preferences (GSP
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What is GSP ?
The United States will end preferential trade treatment for India from Wednesday, USPresident Donald Trump has announced, in a fresh economic headwind for New Delhi alongside slowing growth and record unemployment. India has been the single biggest beneficiary of the decades-old USGeneralized System